New Delhi: According to real estate consultant Vestian, office space leasing in Delhi-NCR has declined by 25 per cent year-on-year by 18.1 lakh square feet in January-March this year due to low demand from corporates.
Office space absorption stood at 24 lakh sq ft in the year-ago period.
Leasing of office space in Delhi-NCR declined by 40 per cent from 30 lakh square feet in the October-December quarter.
The real estate consultancy on Saturday released office leasing data in the top seven major cities.
Office absorption rose 13 per cent to 134 lakh sq ft in January-March 2020 from 118.5 lakh sq ft in the year-ago period.However, absorption declined by 31 per cent during the first quarter of this year after peaking in the fourth quarter of 2023.
"2024 started on a positive note as India's key office markets witnessed sustained absorption activity," said Srinivas Rao, CEO of Vestian.
"The return of office mandates is likely to revive demand for office spaces across the country and drive the next wave of growth amid global headwinds," Ra said.
Southern cities (Bengaluru, Chennai and Hyderabad) contributed 61 per cent of the all-India absorption in Q1 2024.
Their combined stake rose from 54 percent a year ago.Furthermore, the IT-ITES sector dominated with 47 per cent share, followed by the BFSI sector with 11 per cent share.
Flexible spaces attracted interest from large conglomerates post-pandemic, accounting for 8 percent of all-India absorption in Q1 2024.
In Bengaluru, office leasing declined to 26.2 lakh sq ft in January-March this year from 33 lakh sq ft in the year-ago period.
In Chennai, office lease demand doubled from 16 lakh sq ft to 33.5 lakh sq ft.
Office leasing in Hyderabad increased from 15 lakh sq ft to 22.7 lakh sq ft.In Mumbai, office space absorption doubled from 1 lakh sq ft to 24.9 lakh sq ft.
Leasing in Kolkata declined from 3.5 lakh sq ft to 1.6 lakh sq ft.
Office leasing in Pune declined to 7.1 lakh sq ft during January-March 2024 from 15 lakh sq ft in the year-ago period.
Office space absorption stood at 24 lakh sq ft in the year-ago period.
Leasing of office space in Delhi-NCR declined by 40 per cent from 30 lakh square feet in the October-December quarter.
The real estate consultancy on Saturday released office leasing data in the top seven major cities.
Office absorption rose 13 per cent to 134 lakh sq ft in January-March 2020 from 118.5 lakh sq ft in the year-ago period.However, absorption declined by 31 per cent during the first quarter of this year after peaking in the fourth quarter of 2023.
"2024 started on a positive note as India's key office markets witnessed sustained absorption activity," said Srinivas Rao, CEO of Vestian.
"The return of office mandates is likely to revive demand for office spaces across the country and drive the next wave of growth amid global headwinds," Ra said.
Southern cities (Bengaluru, Chennai and Hyderabad) contributed 61 per cent of the all-India absorption in Q1 2024.
Their combined stake rose from 54 percent a year ago.Furthermore, the IT-ITES sector dominated with 47 per cent share, followed by the BFSI sector with 11 per cent share.
Flexible spaces attracted interest from large conglomerates post-pandemic, accounting for 8 percent of all-India absorption in Q1 2024.
In Bengaluru, office leasing declined to 26.2 lakh sq ft in January-March this year from 33 lakh sq ft in the year-ago period.
In Chennai, office lease demand doubled from 16 lakh sq ft to 33.5 lakh sq ft.
Office leasing in Hyderabad increased from 15 lakh sq ft to 22.7 lakh sq ft.In Mumbai, office space absorption doubled from 1 lakh sq ft to 24.9 lakh sq ft.
Leasing in Kolkata declined from 3.5 lakh sq ft to 1.6 lakh sq ft.
Office leasing in Pune declined to 7.1 lakh sq ft during January-March 2024 from 15 lakh sq ft in the year-ago period.